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What sacrifices have YOU made, Yorkshire shareholder asks bank bosses
SHAREHOLDERS overwhelmingly voted in favour of Lloyds Banking Group's UK record £13.5 billion cash call today, despite a Yorkshire-led revolt.
The vote - at a general meeting at Birmingham's NEC - will allow the part-nationalised bank to complete a 22.5 billion fundraising to sidestep the Government's toxic asset protection scheme.
But despite backing the cash call, shareholders demanded to know why they had been kept in the dark until this week over a 25.4 billion emergency loan to HBOS from the Bank of England.
The mammoth support was given at the height of last autumn's crisis at the time Lloyds investors were being asked to vote on the rescue takeover of HBOS - but had been kept secret to prevent further damage to the wider banking system.
There are concerns that the decision to conceal the loans hid the true extent of the troubles at HBOS.
One investor said the rescue takeover of HBOS was at risk of creating a "Frankenstein's monster dragging down Britain's banking system for years" and accused the board of "gratuitously destroying thousands of British jobs".
The vote followed a three-hour question and answer session in which many of the 500 people attending grilled the board over why the group's 2.8 million private shareholders should trust them.
Chairman Sir Win Bischoff, 68, said the cash call would enable the group to "shape our own destiny".
The taxpayer is the largest shareholder, with a 43% stake.
Peter Hepworth, a retired private shareholder from Doncaster, South Yorkshire, told the chairman: "I think you mustn't forget that you are employed by the shareholders.
"History has shown that you have failed in your duty to shareholders over the last 12 months."
Gathered investors clapped and cheered as he asked the board: "What sacrifices have you, as directors, made because you are the people who got us into this mess?
"Do you not think as a board you should voluntarily cut your pay?"
Mr Hepworth invited the chairman to agree to a 20% pay cut, to which the chairman replied: "Thank you for your suggestion."
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Weather for Yorkshire
Saturday 26 May 2012
Today
Sunny
Temperature: 9 C to 21 C
Wind Speed: 17 mph
Wind direction: East
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Sunny
Temperature: 9 C to 22 C
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